Checking the LLC box - Changes?

[TaxGuyBill]

I agree with Gary. Being taxed as a partnership is the 'default' status for a multi-member LLC. That means they can make the election to be taxed as a corporation (for future years) whenever they choose to. They could even apply for a "late election" on Form 8832 if they want to try to do it this year.

[Nashville]

Correction Noted

I assume you mean without creating a new entity.

Yes, that is what I meant. I edited the original post to show this.

It's amazing how people think they can save money with "Legalzoom.com" and other such free internet advice. Even if the language is sufficiently explicit, the reader still doesn't have enough background to know what is being said. Sometimes they can even google up IRS codes and regs, but after doing so, still don't have a clue what the verbage is really telling them.

[Gary2]

I've ended up with an LLC who has (on their own with only internet advice) elected to be taxed as a partnership. They have already
filed for three years.

Any way they can change the election to a C Corp with creating a new entity? Their LLC has worked hard to become certified in several professional areas and these certifications cannot be transferred to a new entity.

I assume you mean without creating a new entity.

I'm not sure if you're asking if they can go back those three years, or just change for the future. I see no reason they couldn't file 8832 to change to corporate treatment for future years.

[Nashville]

I've ended up with an LLC who has (on their own with only internet advice) elected to be taxed as a partnership. They have already
filed for three years.

Any way they can change the election to a C Corp without creating a new entity? Their LLC has worked hard to become certified in several professional areas and these certifications cannot be transferred to a new entity.